Taiwan's Flagship Chip Maker Plans Major Expansion Beyond Taiwan.

TSMC plans to spend tens of billions to build several new chip fabs in Arizona as part of a larger U.S. expansion; a recent Taiwan-U.S. trade deal includes more than $250 billion in Taiwanese spending in the U.S. and $250 billion in credit guarantees.

TSMC is planning a large U.S. expansion that would add several new semiconductor fabrication plants in Arizona and increase the company’s presence outside Taiwan. Company executives and analysts say the move is driven by customer proximity, the global AI demand for advanced chips, and concerns about geopolitical risk. The expansion is linked to a Taiwan-U.S. trade agreement that includes large Taiwanese spending commitments in the United States. Taiwanese officials say Taiwan will remain the epicenter of chip production even as firms build a broader global footprint. Key facts: - TSMC expects to spend tens of billions of dollars to build several new fabs in Arizona, bringing its footprint in the state to about a dozen plants. - The Taiwan-U.S. deal reports more than $250 billion in Taiwanese spending in the U.S. and an additional $250 billion in credit guarantees; TSMC has already committed $165 billion for six new logic fabs and two packaging fabs. - TSMC said it plans up to $56 billion in capital expenditures this year. - TSMC is expanding elsewhere: it opened a factory in Japan in 2024, is building a first fab in Germany, and has discussed plans for the United Arab Emirates that would likely require U.S. approval. - The company has faced challenges in Arizona, including scarce water resources and a limited pool of workers with specialized technical skills. - Some analysts expect most advanced production, design and research to remain in Taiwan until at least the middle of the next decade, with meaningful incremental overseas capacity possible around 2030–2035 and broader resilience against a major Taiwan disruption potentially not until midcentury or later. Summary: The planned expansion would deepen TSMC’s manufacturing presence in the United States and is tied to large investment commitments spelled out in a Taiwan-U.S. deal. Observers say the shift could alter assumptions about Taiwan’s role in global chip supply chains, while timelines for substituting Taiwan’s advanced capacity remain uncertain and extend over years.